Highlights Fourth quarter 2012 results: Net income of NOK (194) million First oil from Huntington expected in March Focused exploration programme with significant value potential Strengthened financial position 2
Repositioning 2011 2012 Focused exploration New licences in strategy focus areas Set for operational Operational delivery Resolved Portfolio high-grading operational issues and rationalisation Streamlined Group restructuring…
2012 operations in review Huntington delayed Oselvar underperformance Danish production in line 8 exploration wells 16 new licences Safe and efficient operations 4
Financial review
Strengthened balance sheet Raised NOK 400 million equity and NOK 300 million bond in Oct-12 Raised NOK 300 million bond in Feb-13 to strengthen liquidity buffer and financial flexibility Substantial increase in cash flow when…
Oil and gas production Ex divested fields Realised 104 112 112 110 119 99 104 108 oil price 7
Income statement Fourth quarter 2012 NOK million Q4-12 Q3-12 Q4-11 2012 2011 Total revenues 177 243 251 832 1616 Production expenses (63) (63) (80) (244) (452) Exploration cost NOK 229 million Exploration expenses (508) (162) (607) (1…
Balance sheet 31 December 2012 NOK million 31.12.2012 30.09.2012 31.12.2011 Assets Non-current assets 5 417 7 057 6 809 Current assets 1 922 1 028 1 367 Reorganisation in Cash 604 444 689 Norway and UK, Total assets 7 944 8 529 8 864…
Covenant ratios Gearing ratio Equity ratio times percent For definitions of ratios please refer to loan agreements. Historical figures have not been recalculated. 10
Operations
Huntington start-up approaching Noreco 20 percent operated by E.ON Ruhrgas UK E&P Voyageur Spirit FPSO 12
Huntington to boost cash flow Analytical information (est.) Huntington field (P1114), UK Noreco share Operator E.ON Ruhrgas Noreco ownership 20 percent Peak production 6,000 boed Expected first oil March 2013 Recoverable volumes…
Oselvar Current status Producing from two wells Production level around 900 boe/day net to Noreco Plans Task force evaluating possible short-term actions Develop new reservoir model as basis for further decisions 14
Siri area Weather restrictions impact regularity Siri repair to improve regularity New production well planned on Nini East 15
Exploration
Exploration strategy Well positioned to create value Four key geographical areas 18 new licenses in line with refocused strategy added over last year Building a balanced exploration drilling programme for 2014-15 17
PL519 Albert Chalk Resource potential 10 157 mmboe (Source: NPD) 1 km Evaluate well results Update the geological interpretation 19
New exploration licenses in 2012 20
New exploration licenses in 2012 21
PL453S Ogna Noreco 25% Lundin operated currently drilling Simple fault bound 4-way dip closure in a Middle Jurassic play, in close vicinity to local kitchen, analogues to the Bream discovery Main target is the Sandnes sandstone…
P1658 Scotney Noreco 44% Suncor operated currently drilling Robust 4-way dip closure in proven Upper Jurassic play, in close vicinity to existing infrastructure CoS: 34% Primary risk element: reservoir presence 23 82 mmboe gross, 20…
PL360 Lupin Noreco 15% Statoil operated Large fault bound structure in Ling Graben, gas prospect, target reservoir is the Rotliegendes sands, few wells in North Sea have targeted this play, hence a potential new play opener CoS: 10%…
Outlook Production growth Operational 4-5 exploration wells Corporate structure Organisational Cost and capital dicipline Deleveraging Financial Optimise debt portfolio 26
Summary Huntington on track Strengthened financial position Focused exploration program 27
ADDITIONAL INFORMATION 29
30 35 40 45 50 20 25 mmboe 2007 reserves 30,9 4,7 2008 produced 2008 additions 6,5 2008 reserves 32,6 2009 produced 3,8 2009 additions 8,3 Development in 2P reserves 2009 reserves 37,2…
Oil and gas reserves Reserves per field The reserves have been verified by DeGolyer & MacNaughton. 31
Noreco at a glance Exploration-driven E&P company 8 exploration wells planned in 2013/14 Production from six fields January 2013: 3,559 boe/day Huntington field on stream in Mar-13 Significant portfolio of licenses and…
Noreco bonds NOK million Bond Outstanding Due Terms NOR04 NOK 1,219.5 mill 20 Nov 2014 12.9 % fixed, pledge in shares in subsidiaries NOR05 NOK 698.5 mill 6 Dec 2013 3m NIBOR + 8 %, unsecured NOR06/07 NOK 600 mill 27 Apr 2016 10.25 %…
Hedging programme Put options Noreco is using put 1,000 barrels options to protect cash flow from oil price downside 24 months rolling forward programme Asian type puts based on monthly average Brent oil price 34
PL492 Gotha Snadd Noreco 20% Lundin operated Triassic target in Western Barents Sea Emerging play With additional secondary target in Permian Frontier Play CoS (oil): 10% CoS (HC): 20% Primary risk element: Charge 68 217 mmboe…
DK 09/95 Gita South Noreco 16.4% Maersk operated Upper Jurassic target in close vicinity (up- dip) to the Svane gas discovery and south of Gita discovery CoS: 27% Primary risk element: Trap 47 475 mmboe gross (gas), 28 mmboe net…
PL484 Verdande Noreco 40% Noreco operated Middle Jurassic target in well proven play northwest of Norne CoS: 29% Primary risk element: Trap 53 236 mmboe gross (gas and oil), 39 mmboe net P50, with considerable additional dependant…
UK P1889 Niobe Noreco 22.5% Suncor operated Jurassic stratigraphic pinch-out trap, up-dip of proven oil discovery Located in Inner Moray Firth in proven play east of Beatrice Field, de-risking additional prospects given success Cos:…
P1650 Crazy Horse Noreco 78% Noreco operated Stratigraphic trap in Outer Moray Firth (UK) north of Claymore Field. Proven Lower Cretaceous Scapa Sands (reservoir) in nearby wells Well will test both the Scapa sands (primary target)…
Production per field boe/day Field Noreco Q1-2012 Q2-2012 Q3-2012 Q4-2012 share Oselvar 15% 0 893 984 431 Enoch 4.36% 28 5 0 0 Lulita 28.2% 293 280 162 251 Nini 30% 470 502 582 344 Nini East 30% 1 826 2 086 2 178 1 941 Cecilie 61% 275…
Shareholders Top 20 shareholders as of 25 February 2013 Shareholder Shares % of total SABARO INVESTMENTS LTD 35 920 177 10,1 % IKM INDUSTRI-INVEST AS 35 769 099 10,1 % LYSE ENERGI AS 27 701 514 7,8 % OM HOLDING AS 12 685 484 3,6 % GOLDMAN…
Important information This company presentation (the Presentation) has been prepared by Norwegian Energy Company ASA (Noreco or the Company). The Presentation has not been reviewed or registered with, or approved by, any public authority,…
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